Bhutan, formally known as the Kingdom of Bhutan, is a landlocked nation located in the Himalaya mountains. Bhutan borders China and India, and has historically been known by a number of names. It has been called Lho Mon, meaning "southern land of darkness," Lho Tsendenjong, or "southern land of the Tsenden cypress," and Lhomen Khazhi, which means "southern land of four approaches." The Bhutanese currently refer to their nation as Druk Yul, or "land of the thunder dragon."

The early history of Bhutan is not clear, since many historical records were destroyed by fire in 1827 in Punakha, the ancient capital. It is known that Padma Sambhava, a Buddhist saint passed through Bhutan in 747 CE, and various sects of Buddhism began to emerge in the area. At the same time, the area was ruled by different Tibetan and Mongolian overlords. After the Mongol rule began to decline, these different Buddhist groups began to battle for rule, until the Drukpa sub-sect gained power in the sixteenth century.

For the next century, the area now known as Bhutan was made up of various fiefdoms until the Tibetan military leader and lama Shabdrung Ngawang Namgyal unified the area. Namgyal implemented a series of laws and built a network of fortresses, many of which still exist, to protect the country. In 1621, when Namgyal died, Bhutan began a civil war. The area was then unsuccessfully attacked by Tibet in 1710 and again, with Mongol help, in 1730.

In the eighteenth and nineteenth century, Bhutan had many border disputes with neighboring countries, and finally signed the Treaty of Sinchula with British India. Eventually, in 1870, internal power struggles led to another civil war, resulting in Ugyen Wangchuck, the governor of Tongsa, gaining power. He signed a treaty with Great Britain which technically let Great Britain direct Bhutan's foreign affairs, meaning that Bhutan was not completely sovereign.

When India gained independence, Bhutan began a friendly relationship with India, which helped Bhutan with its modernization program. In 1953, Bhutan's legislature was established, and in 1971, Bhutan was admitted to the United Nations. In 1998, Bhutanese King Jigme Singye Wangchuck implemented political reforms leading to more democracy. The king announced in 2006 that he would abdicate the throne and Bhutan will have its first national elections in 2008.

Today, Bhutan is one of the least developed and most isolated countries left on earth, and its government seems to prefer it that way. A ban on television and Internet access was only lifted in 1999, making it one of the last countries on earth to gain access to television.

The geography of Bhutan ranges from Himalayan peaks in the northern part of the country to subtropical plains in the southern area. The national religion is Mahayana Buddhism, and the country's population is primarily Buddhist. Although the Ngultrum is the national currency, the Indian rupee is also accepted in Bhutan.

Bhutan has one of the world's smallest economies, but it is growing rapidly, with an average yearly income of $1,321 US Dollars per year in 2006. The economy is based primarily on forestry, tourism, agriculture, and hydroelectric power, which is sold to India. Since roads are limited and railway systems are non-existent, Bhutan has difficulty exporting any goods.

The country of Bhutan considers happiness more important than Gross National Product. In a survey by the University of Leicester in the United Kingdom, Bhutan had the honor of being ranked the 8th happiest place in the world. In fact, Bhutan has tried to measure the country's Gross National Happiness (GNH), although there is no set formula for the GNH.